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Check Before You Invest : Medico Intercontinental Ltd

BSE: 539938 NSE: ISIN: INE858Q01019
  |   Sector:  Miscellaneous   |   Industry:  Trading

Snapshot

Q.1 Which industry/sub-sector does Medico Intercontinental Ltd belong to?
Medico Intercontinental Ltd belongs to the Miscellaneous sector, operating specifically within the Trading segment.
Q.2 Is Medico Intercontinental Ltd a good quality company?
Medico Intercontinental Ltd is a quality company, based on a multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Medico Intercontinental Ltd undervalued or overvalued?
Medico Intercontinental Ltd appears Undervalued, as its key valuation ratios are lower than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios Current 5-year
Historic Median
Price to Earnings 10.05 17.21
Price to Book 0.57 1.78
Price to Sales 0.43 0.72
EV to EBITDA 6.63 10.86
Q.4 Is Medico Intercontinental Ltd a good buy now?
Medico Intercontinental Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

  • How has it performed on generating Profits?

    By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.

  • How efficiently has it utilized Capital?

    By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.

  • How is it managing its Debt?

    By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of Medico Intercontinental Ltd?
Medico Intercontinental Ltd revenue growth is 52.4% for FY-2025, which is above its 5-year CAGR of 7.42%, indicating faster growth.

Q.2 Gross Profit margin of Medico Intercontinental Ltd?
Medico Intercontinental Ltd Gross profit margin which is the profit after deduction of direct costs, is 6.2% for FY-2025, which is above its 5-year median of 5%, indicating increasing margins.

Q.3 Operating Profit Margin of Medico Intercontinental Ltd?
Medico Intercontinental Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 6.41% for FY-2025, which is above its 5-year median of 5.8% indicating increasing margins.

Q.4 Net Profit Margin of Medico Intercontinental Ltd?
Medico Intercontinental Ltd Net Profit Margin is 3.82% for FY-2025, is above its 5-year median of 3.49%, indicating increasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 6.2 5
Operating Profit Margin (%) 6.41 5.8
Net Profit Margin (%) 3.82 3.49

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Medico Intercontinental Ltd?
Medico Intercontinental Ltd Return on Asset is 5.23%, which is in line with its 5-year historical median of 5.5%, indicating stable asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Medico Intercontinental Ltd?
Medico Intercontinental Ltd Return on capital employed is 9.55% for FY-2025, which is below its 5-year historical median of 10.89%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.7 Return on Equity (ROE) of Medico Intercontinental Ltd?
Medico Intercontinental Ltd Return on equity is 6.86% for FY-2025, which is below its 5-year historical median of 8.13%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of Medico Intercontinental Ltd?
Medico Intercontinental Ltd Cash conversion cycle is 100 days, in line with its 5-year historical median of 100 days, indicating stable working capital management. However, you need to compare this with its peers in the industry.
Current Level 5-year
Historic Median
Asset Turnover (x) 1.37 1.58
ROE (%) 6.86 8.13
ROCE (%) 9.55 10.89
Cash Conversion Cycle 100 days 100 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of Medico Intercontinental Ltd?
Medico Intercontinental Ltd Debt-to-Equity ratio is 0.34, which is above the industry average of 0.03, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Medico Intercontinental Ltd?
Medico Intercontinental Ltd Debt to cash flow from operations is -1.95, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Medico Intercontinental Ltd?

Q.1 Promoter shareholding and pledge status of Medico Intercontinental Ltd?
Promoters hold 57.15% of the Medico Intercontinental Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Medico Intercontinental Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Medico Intercontinental Ltd vs industry peers?
Medico Intercontinental Ltd revenue CAGR is 7.42%, compared to the industry median CAGR of 0%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 52.4 -
Gross Profit Growth (%) 47.5 17.9
Operating Profit Growth (%) 64.8 16.4
Net Profit Growth (%) 35.3 17.3
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 1.37 0.52
ROE (%) 6.86 2.05
ROCE (%) 9.55 3.6
Cash Conversion Cycle (days) 100.36 46

Valuation & price assessment

Q.1 Stock return of Medico Intercontinental Ltd over the last decade?
Over the last 5 year(s), the stock has delivered a CAGR of -10.21% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
- -10.2% -33.3% -36.2%
Q.2 Valuation ratios of Medico Intercontinental Ltd vs historical?
The current P/E ratio of 10.05 is lower than its historical median of 17.21, indicating that the stock is trading below its historical average valuation.
Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?
Valuation Ratios Current 5-year
Historic Median
5-year
Industry Median
Price to Earnings 10.05 17.21 33.62
Price to Book 0.57 1.78 1.57
Price to Sales 0.43 0.72 2.21
EV to EBITDA 6.63 10.86 14.09

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